New Zealand-founded global fintech FNZ is trying to head of a class action taken by a group of employees, turning to the Grand Court of the Cayman Islands to challenge the board decision of the entity taking the suit of the staff’s behalf.
Meanwhile, the S&P/NZX 50 index declined with stock markets across Asia mixed after a soft lead from Wall Street on Friday, when weak jobs figures led to the firing of the US Bureau of Labor Statistics chief and as investors come to grips with the new world trade order of President Donald Trump.
Tourism Holdings rallied after it rejected a takeover bid by the Australian Trouchet family and BGH Capital, calling the $2.30 indicative offer opportunistic and well shy of the board’s view for a share price above $3.
And high-tech components maker Rakon is set for a showdown at this month’s annual meeting with the founding Robinson family and Taiwan’s Siward Crystal Technology throwing their weight against three independent directors.
Legal matter
In the latest manoeuvring in the FNZ dispute between employee shareholders and the fintech, Falcon Newco is seeking to overturn the board decision of the KiwiGP CayCo entity taking the class action on behalf the staff, and wants the Grand Court of the Cayman Islands to declare that there wasn’t a quorum for the board to decide to pursue the litigation.
Meanwhile, stock markets across Asia were mixed after the Friday slump in the US and Europe, when weak US jobs data and President Donald Trump’s firing of the statistics agency’s head spooked investors. Australia’s S&P/ASX 200 index was down 0.1% in late trading and Japan’s Nikkei 225 index dropped 1.4%, while Singapore’s Straits Times Index advanced 0.8% and Hong Kong’s Hang Seng rose 0.7%.
New Zealand’s S&P/NZX 50 index fell 45.36 points, or 0.4%, to 12,684.04, with 31 stocks declining, 13 gaining and six unchanged. Turnover across the main board was $117.6 million.
The kiwi dollar traded at 59.13 US cents at 5pm in Auckland from 58.99 cents at 7am and 58.79 cents last week.
Heavyweight companies dragged the domestic index lower, with Infratil down 1.7% at $11.425 and Fisher & Paykel Healthcare slipping 0.6% to $35.78.
Rough retailing
KMD Brands led the market lower, falling 4.1% to 23.5 cents, a new record low. Briscoe Group, which is a shareholder of KMD after a failed takeover attempt in 2016, was unchanged at $6.01 after lifting second quarter sales 2.1% and flagging first-half profit would fall by as much as 13%.
Gentrack dropped 3.2% to $10.12, while Sanford declined 2.9% to $5.44.
The power companies were mixed after Genesis Energy reached an agreement with the other generator-retailers to set up a strategic coal reserve for the Huntly power station, subject to Commerce Commission approval.
Genesis rose 1.1% to $2.385, while Contact Energy slipped 0.6% to $9.07 and Meridian Energy declined 0.6% to $5.70. Mercury NZ gained 1.5% to $6.24, posting the biggest increase on the NZX50 for the day.
Tourism Holdings rose 0.5% to $2.06 after the board rejected a non-binding offer from the Trouchet family and BGH Capital of $2.30 a share, calling it opportunistic and below the $3-plus valuation the tourism company’s directors estimate, with the firm trading at the bottom of the cycle.
“That was expected,” said Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene. “It was a significant premium to where the shares were trading at the time, and they’ll be hoping they come back with something better.”
Some concessions
Tourism companies got put on a stronger footing over the weekend after prime minister Christopher Luxon announced plans to open up more concessions on conservation land. Auckland International Airport increased 1.3% to $7.60, while Air New Zealand was unchanged at 58 cents, and travel software developer Serko was unchanged at $2.83. Casino operator SkyCity Entertainment Group fell 1% to 97 cents.
Mainfreight rose 1% to $57 after director Annie Steel followed managing director Don Braid’s lead in buying shares on market, purchasing 820 shares at $60 each.
Ryman Healthcare was the most heavily traded stock on a volume of 2.6 million, ending the day unchanged at $2.50.
Outside the benchmark index, Rakon fell 2.5% to 79 cents after the founding Robinson family and Taiwan’s Siward said they’ll oppose the election of three independent directors at this month’s annual meeting, with former chief Brent Robinson wanting to chair the board.
Pacific Edge slipped 2.9%, or 0.3 of a cent, to 10.1 cents after raising $4.7 million of a $5 million share purchase plan at 10 cents a share. That was on top of $16.1 million raised in a placement.
Reporting by Paul McBeth. Image from Curious News.
